Lord Triesman: In his opening remarks to the London Conference on Afghanistan held on 31 January to 1 February, his Excellency Hamid Karzai, President of the Islamic Republic of Afghanistan, described narcotics and terrorism as the two gravest threats facing Afghanistan.
	Despite a 21 per cent reduction in opium poppy cultivation in 2005 (130,000 hectares in 2003–04 to 104,000 hectares in 2004–05), the trade in Afghan drugs remains a significant challenge to Afghanistan's long-term security, development and effective governance. It undermines the stability of the region and accounts for almost 90 per cent of the world supply of opiates.
	President Karzai has taken a strong lead in the struggle against the pervasive and corrosive threat posed by the cultivation, production and trafficking of narcotics. His Government have, with the support of the UK as the key partner nation for counter-narcotics, recently reviewed and updated their National Drug Control Strategy to ensure their policy approach is the right one. The strategy was endorsed by the Cabinet Sub-Committee on Counter-narcotics and approved by President Karzai in January. The international community also expressed its strong collective support for the updated strategy following its presentation by the Afghan Minister for Counter-narcotics, Engineer Habibullah Qaderi, during the counter-narcotics session of the London conference.
	The National Drug Control Strategy represents a balanced and comprehensive approach to the drug problem. It sets out four key priorities, which I believe will help make a greater impact on the trade and sustain the reduction in cultivation we have seen in 2005. These are:
	disrupting the drugs trade by targeting traffickers and their backers;
	strengthening and diversifying legal rural livelihoods;
	reducing the demand for illicit drugs and treatment of problem drug users; and
	developing state institutions at the central and provincial level.
	The strategy also notes that,
	"where there are legal livelihoods, a credible threat of eradication is needed in order to incentivise the shift away from poppy cultivation."
	It also highlights the importance of raising public awareness and improving international and regional co-operation on counter-narcotics.
	In recognition of the serious threat that narcotics pose to the broader reconstruction effort in Afghanistan and the importance of adopting a comprehensive approach equal to the scale of the challenge, counter-narcotics is also included as a cross-cutting theme in the Afghanistan compact between the Afghan Government and the international community, which was also launched at the London conference. The compact includes high-level benchmarks to measure progress in the counter-narcotics effort. These benchmarks are underpinned by the more detailed planning in the National Drug Control Strategy and the interim Afghan National Development Strategy, the third of the interlocking documents launched in London.
	The challenge now is implementation. In support of the Government of Afghanistan's efforts, the UK will spend £270 million over this and the next two financial years, including some £130 million on legal rural livelihoods and institutional development from the Department for International Development. In the current financial year, about 70 per cent of the rest of UK spending has been channelled into efforts to target traffickers and disrupt the trade. We expect this to remain a top priority.
	As part of the activity to date, the UK has helped to establish and provide training for the Counter-narcotics Police of Afghanistan—the lead drug law enforcement agency, headquartered in Kabul, with seven provincial offices. The UK is also providing training for the Afghan Special Narcotics Force, an elite and highly trained force equipped to tackle high-value targets across the country. We are also working with the international community to recruit and train a counter-narcotics criminal justice task force of Afghan investigators, prosecutors and judges to work with the counter-narcotics Police, to be able to push through successful drugs investigations and prosecutions.
	The UK has funded the development of five drug treatment centres and is working with the Ministry of Counter-narcotics to determine how best to support activity in this area following the completion of UNODC's survey on drug use within Afghanistan late last year. We are also supporting the US-led Poppy Elimination Programme (PEP) by funding the salaries of Afghan staff charged with raising awareness of the illegality of the opium industry and monitoring governor-led eradication in priority poppy growing provinces.
	From the spring, as my right honourable friend the Secretary of State for Defence (Dr. John Reid) announced on 26 January, UK troops will be deployed to the south of Afghanistan, to Helmand province, in support of the UN authorised, NATO-led International Security Assistance Force. They will work to counter insurgency and help the appropriate authorities build security and government institutions to continue the progress of recent years. Above all, their presence will help the Afghans create the environment in which economic development and institutional reform—both essential to the elimination of the opium industry—can take place. ISAF forces will be able to help with the provision of training to Afghan counter-narcotics forces and will, when necessary, provide support to their operations. They will also help the Afghan Government explain their policies to the Afghan people. ISAF forces will not take part in the eradication of opium poppy or in pre-planned and direct military action against the drugs trade. As President Karzai has pointed out, this is a job for the Government of Afghanistan.
	The UK is working hard to increase international support, including NATO and coalition support, for the counter-narcotics campaign. It was heartening to note the collective recognition at the London conference of the need to increase resources to help the Government of Afghanistan deliver against the ambitious, but essential, benchmarks it has set itself. Several delegations, including the US ($2 million), Sweden ($2 million), Korea and the UK (at least £30 million, or $52.9 million), announced contributions to the Counter-narcotics Trust Fund set up to support the strategy in London. These contributions add to those already committed by Australia, New Zealand, the EC and Estonia ($1.5 million, $338,000, $18.4 million and $50,000 respectively), giving a total of $77 million pledged to the CN trust fund. The fund will bring counter-narcotics funding on budget; give the Afghans greater ownership over this important agenda; and ensure that assistance is targeted as effectively as possible.
	The commitment of the Government of Afghanistan and the support of the international community are starting to yield results. Progress is being made. 2005 saw the establishment of a Ministry for Counter-narcotics in Afghanistan, the passage of vital counter-narcotics legislation, the conviction of over 90 drug traffickers and the seizure of some 165 tonnes of opiates. The Counter-narcotics Police of Afghanistan is now 500 strong and the operations of the Afghan Special Narcotics Force are starting to make an impact on the trade, forcing traffickers to shift their modus operandi, moving and storing drugs in smaller quantities.
	In parallel, the National Rural Access Programme has restored thousands of kilometres of roads and renovated hundreds of irrigation systems through labour-intensive cash-for-work schemes aimed at providing basic employment opportunities for the rural poor. Work is also taking place to improve social protection for the poor (through the creation of social safety nets); to improve access to finance and credit; and to develop better provincial development planning processes and research programmes into new crops and markets.
	It will not be easy to sustain last year's reduction in cultivation. Sustainable drug elimination strategies take time. Afghanistan will continue to require the strong support of the international community and the firm commitment of its own Government. As the key partner nation for counter-narcotics the UK remains committed to the challenge and to supporting the delivery of the National Drug Control Strategy. We believe this represents the best means of securing a sustainable reduction in the cultivation and trafficking in opium.

Lord Drayson: My right honourable friend the Secretary of State for Defence (Dr John Reid) has made the following Written Ministerial Statement.
	I am pleased to announce that subject to parliamentary approval of the necessary supplementary estimate, the Ministry of Defence departmental expenditure limits (DEL) will be increased by £1,303,494,000 from £31,053,831,000 to £32,357,325,000. Within the DEL change, the impact on resources and capital is as set out in the following table.
	
		New DEL -- £000s
		
			  Change Voted Non-voted Total 
			 Resource 770,794 33,330,552 396,792 33,727,344 
			 Capital 259,997 6,797,534 744 6,798,278 
			 Depreciation* 272,703 -8,168,297 - -8,168,297 
			 Total 1,303,494 31,959,789 397,536 32,357,325 
		
	
	*Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.
	The change in the resource element of the DEL arises from:
	a transfer of £104,000 from the Cabinet Office to the MoD in respect of future funding arrangements with the Parliamentary Counsel Office;
	a transfer of £2,100,000 from the Foreign and Commonwealth Office to the MoD in respect of an extension to aircraft operations;
	a transfer of £167,000,000 from the MoD to the Department of Trade and Industry relating to start-up costs for the newly established Nuclear Decommissioning Authority;
	to draw down the department's unallocated provision of £885,000,000 to meet additional requirements for depreciation and provisions;
	to increase non-budget expenditure by £267,606,000 to reflect the impact of the revised Treasury discount rate on provisions;
	to reduce resource provision by £65,000,000 to reflect a technical agreement in the 2004 spending review relating to changes in the handling of cash release of provisions;
	an increase in income of £10,000,000 offset by resource appropriations in aid in the same amount, relating to forecast income being above that requested at main estimates for the central TLB;
	an increase in RfR2 resource of £933,565,000 to reflect the costs of peacekeeping in Iraq and Afghanistan;
	transfers in of £64,000,000 and £3,200,000 resource from the Foreign and Commonwealth Office to the MoD in respect of the Global Conflict Prevention Pool for Balkans programme costs and the Global rest of the World Conflict Prevention Pool costs; and
	to recognise a non-budget grant in aid payment of £175,000, offset by a corresponding reduction in DEL, to the Royal Hospital Chelsea and the National Army Museum to fund commercial insurance policies.
	The change in the capital element of the DEL arises from: 
	recognition of a capital DEL reduction of £15,000,000 in RfR1, the advanced purchase of programmed equipment as urgent operational requirements, under RfR2 in 2004–05;
	a reduction of capital provision by £55,000,000 to reflect a technical agreement agreed in the 2004 spending review relating to changes in the handling of cash release of provisions;
	an increase in capital appropriations in aid of £27,857,000 relating to the redemption of preference shares held by the MoD in QinetiQ; and
	an increase in RfR2 capital DEL of £329,997,000 to reflect the costs of peacekeeping in Iraq and Afghanistan.
	The changes to capital and resource, together with changes in internal budgetary reallocations and adjustments to working capital, will lead to an increased net cash requirement of £1,889,814,000.

Lord Davies of Oldham: My right honourable friend the Secretary of State for Transport (Alistair Darling) has made the following Ministerial Statement.
	From 11 November 2007, responsibility for Silverlink Metro services will be transferred to Transport for London (TfL).
	Silverlink Metro consists of train services between Richmond and North Woolwich, Gospel Oak and Barking, Clapham Junction to Willesden Junction and between Watford and Euston.
	The transfer is in line with the Department for Transport's White Paper commitment to examine mechanisms for giving the London Mayor more control over rail services within London.
	After the date of transfer, TfL will have complete responsibility for services levels on Silverlink Metro. TfL will now begin the process of procuring a concession to operate services after the transfer.

Lord McKenzie of Luton: My honourable Friend the Financial Secretary (John Healey) has made the following Written Ministerial Statement.
	Subject to parliamentary approval of any necessary supplementary estimate, HM Treasury resource DEL will be increased by £914,000 from £256,064,000 to £256,978,000. The administration budget will be reduced by £5,313,000 from £166,854,000 to £161,541,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
	
		New DEL
		
			  Change Voted Non-voted Total 
			 Resource 914,000 221,592,000 35,386,000 256,978,000 
			 Of which: Administration -5,313,000 161,141,000 400,000 161,541,000 
			 Capital -1,745,000 5,455,000 - 5,455,000 
			 Depreciation* 8,663,000 -6,518,000 - -6,518,000 
			 Total 7,832,000 220,529,000 35,386,000 255,915,000 
		
	
	*Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.
	The net change in the resource element of the DEL arises from the Machinery of Government change transferring the Government Social Research Unit from Cabinet Office to HM Treasury, £914,000 for 2005–06.
	The following items are DEL-neutral:
	The drawdown of £600,000 administration costs from the Financial Inclusion Fund for expenditure on the promotion of banking services to those on low incomes. £1 million of funding for the FIF was classified as Treasury non-voted DEL administration budget at the start of the year; the other £400,000 remains within non-voted DEL.
	Transfer between RfRs 1 and 3, £12,465,000, to fund OGC's work on its wider remit, including delivering the efficiency programme and changes in provisions relating to the residual vacant estate.
	Transfer between RfRs 1 and 2, £3,700,000, for increased spend on coinage arising from higher metal prices.
	Increase in appropriations-in-aid within all three RfRs (RfR1 £10,702,000, RfR2 £500,000, RfR3 £325,000) with increased expenditure switching from RfR1 to RfR2 for coinage spend, see above, and RfR3 for expenditure relating to OGC's fee-earning services.
	Movement of OGC Efficiency Challenge Fund allocation from non-voted to voted, £2,422,000. The allocation for the ECF within non-voted DEL for 2005–06 was £7,800,000, and total forecast ECF expenditure for 2005–06 is £8,868,000. The other £6,446,000 of funding is being transferred from RfR1, as above.
	The net reduction of £1,745,000 in the capital element of the DEL arises from:
	Transfer of capital spend from core Treasury (RfR1) to fund planned expenditure by OGC (RfR3). The transfer is DEL-neutral. In addition, non-operating appropriations in aid are increased by £1,380,000 to cover loan repayments from OGC buying solutions to OGC. The increased net provision is to finance OGC's spend on its domestic IT systems and capital improvements to its Norwich office.
	A further reduction in core Treasury and DMO capital for provision in the main estimate no longer required.
	The non-voted resource DEL of £35.4 million in the table above includes banking and gilts registration services provided by the Bank of England and Computershare, plus MEPs' salaries and the Civil List. Latest forecasts indicate that those activities are likely to underspend the provision by around £3.9 million in aggregate. In addition, £400,000 of the original £1 million provision for the Financial Inclusion Fund and £5,378,000 of the original £7.8 million provision for the Efficiency Challenge Fund has not been transferred to voted resource DEL and will not be applied in 2005–06.